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The sphere of subsoil use in Ukraine is over regulated

09/ 12/ 2020
  Businesses mostly had burdensome experience with obtaining permits for groundwater extraction. Therefore, EBA member companies, namely producers and suppliers of drinking and mineral water, urge to unify or reduce the number of documents required for the extraction of groundwater. To this end, the European Business Association addressed a respective letter to the Ministry of Environmental Protection and Natural Resources of Ukraine and the Peoples Deputies of Ukraine. Currently, the company must obtain a special subsoil use permit for the extraction of groundwater, including mineral water. However, this permit does not allow the company to start extraction as there are other additional documents to obtain which to some extent duplicate the information contained in the special subsoil use permit. Obtaining some additional documents, such as land-use planning for subsoil extraction, is a lengthy process that can take years. According to the EBA experts, the list of documents, which are required for the extraction of groundwater, should be optimized to avoid duplication of information, significantly reduce the time of registration, and remove some shortcomings. The EBA experts have developed proposals for the necessary changes to the Ukrainian legislation to simplify the obtainment of permits and, accordingly, to reduce the regulatory burden on subsoil users. Particularly, we propose the following deregulation steps: Reducing the list of permits for groundwater extraction or unifying them into a single document. Providing an opportunity for the subsoil user to start extraction of groundwater based on a special subsoil use permit until the completion of the procedure for issuing the remaining permits. Simplifying the procedure for forming a land plot (including forest land plots) to carry out subsoil mining activities on it. Granting the subsoil user with the right to construct objects necessary for the extraction and transportation of subsoil on a land plot obtained under the easement terms. We hope that in cooperation with government agencies we will be able to implement progressive changes in the context of subsoil use reform, namely, to simplify conditions and launch deregulation processes in the field of groundwater production.

Businesses mostly had burdensome experience with obtaining permits for groundwater extraction. Therefore, EBA member companies, namely producers and suppliers of drinking and mineral water, urge to unify or reduce the number of documents required for the extraction of groundwater.

To this end, the European Business Association addressed a respective letter to the Ministry of Environmental Protection and Natural Resources of Ukraine and the People’s Deputies of Ukraine.

Currently, the company must obtain a special subsoil use permit for the extraction of groundwater, including mineral water. However, this permit does not allow the company to start extraction as there are other additional documents to obtain which to some extent duplicate the information contained in the special subsoil use permit.

Obtaining some additional documents, such as land-use planning for subsoil extraction, is a lengthy process that can take years. According to the EBA experts, the list of documents, which are required for the extraction of groundwater, should be optimized to avoid duplication of information, significantly reduce the time of registration, and remove some shortcomings.

The EBA experts have developed proposals for the necessary changes to the Ukrainian legislation to simplify the obtainment of permits and, accordingly, to reduce the regulatory burden on subsoil users. Particularly, we propose the following deregulation steps:

  1. Reducing the list of permits for groundwater extraction or unifying them into a single document.
  2. Providing an opportunity for the subsoil user to start extraction of groundwater based on a special subsoil use permit until the completion of the procedure for issuing the remaining permits.
  3. Simplifying the procedure for forming a land plot (including forest land plots) to carry out subsoil mining activities on it.
  4. Granting the subsoil user with the right to construct objects necessary for the extraction and transportation of subsoil on a land plot obtained under the easement terms.

We hope that in cooperation with government agencies we will be able to implement progressive changes in the context of subsoil use reform, namely, to simplify conditions and launch deregulation processes in the field of groundwater production.

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